Deal values buoyed by Trafford Centre sale

THE value of deals handled by Manchester advisers rose to £3.9bn, according to figures from Pro Manchester.

The 2010 Annual Corporate Finance Deals Review – compiled by Pro Manchester in association with Corpfin Experian – is buoyed by Capital Shopping Centres’ £1.6bn acquisition of the Trafford Centre which completed last month.

After stripping this deal out there was a 11% decline in deal values compared with 2009’s £2.6bn. But the total in that year was distorted by the £955m acquisition of Pets at Home by private equity group KKR.

There was also a decline in the number of deals last year – down 8% from 231 to 211. Most deals involved manufacturing firms and acquisitions were the most popular type of transaction with 104 deals recorded, down 20%. Management buyout activity fell 48% in 2010.

International deals included the £23m takeover of Blackburn Football Club by Indian-based poultry business, Venky’s, and the £93m acquisition of British Salt by the British-based subsidiary of Indian conglomerate Tata.

Paul Lupton, head of corporate finance at accountancy firm Deloitte and deputy chairman of Pro Manchester, said: “Although the current climate is challenging, the Manchester F&P [financial and professional] sector has fared relatively well over the past 12 months. Manchester professionals continue to have a strong presence in the North West, reinforcing our position as a leading centre for financial and professional services outside of London.”